Cost Overruns

intensive efforts during the last four years have helped in bringing down the average cost overruns of the central sector projects from 62 per cent in 1998 to 36 per cent in march 2001. according to officials in the ministry of statistics and programme implementation, implementation of recommendations of the group of ministers set up 1994 in regard to approval, implementation and monitoring of projects have helped in bringing down the escalation in costs. the government, they said, has...

NEW DELHI: As many as 224 central sector infrastructure projects in sectors like road, rail and power were showing cost overrun of over Rs 2 lakh crore till December-end, Parliament was informed today. "738 projects (worth Rs 150 crore each) were on monitor of this ministry as on December 31...original cost of these 738 projects was Rs 9,77,589.16 crore and their total anticipated completion cost is Rs 11,84,766.43 crore," Statistics Minister V K...

Cost overruns, growing competition, disappointing order inflows and pressure on operating margins have taken the steam out of the stock price of engineering solutions provider Voltas, notwithstanding its otherwise strong balance sheet. The company's stock has shed more than 62% of its value over the past one year — nearly twice the decline in the BSE Capital Goods index during the period. While the stock certainly appears to be a bargain buy at the current trading price...

NEW DELHI: The government said on Thursday cost overrun in major infrastructure projects has gone down by 0.9 per cent to 21.5 per cent since March this year with completion of 51 projects worth Rs 23,910 crore in keeping with the focus of the NCMP of the UPA government. "Our thrust has been to reduce cost overruns in central projects. With a proper monitoring mechanism in place we have brought it down to 21.5 per cent now from 22.4 per cent six months...

NEW DELHI: Delhi Metro Rail Corporation (DMRC) has reported 70 per cent progress in civil works and overall physical progress of 57 per cent in the Phase-III Project, covering about 140-km long route. In a review meeting of six Metro projects by the Urban Development Ministry, DMRC reported financial progress of 40 per cent for the Phase-III Project. The Phase-III is scheduled for completion between May, 2015 and December, 2016. Urban Development Secretary Madhusudhan...

NEW DELHI: More than half of the big infrastructure projects related to road transport and highways , power and railways are into cost and time overrun, the government informed Parliament today. The Ministry of Statistics and Programme Implementation is monitoring 710 projects, including 510 projects of road transport and highways, power and railways sector. "Of these 510 projects, 100 projects were showing time overruns and 175...

NEW DELHI: The price of indigenous aircraft carrier has shot up a whopping six times and will now cost Rs 19,341 crore, a parliamentary panel has said, criticising the "regular delays" and cost overruns in almost all acquisition activities of the navy. The Standing Committee on Defence also said it is "high time" that adequate budgetary provisions are made to the force so that deficiencies are mitigated and the country is capable of taking on two-front...

NEW DELHI: Projects run by Airports Authority of India to expand and modernise four major airports have experienced cost overruns of over Rs 126 crore, according to official figures. The airports where the works have suffered cost overruns are at Gondia, Nagpur, Srinagar and Silchar. In all cases, the higher costs have occurred due to change in the scope of work and provisions for various infrastructural facilities that were not included in the initial...

NEW DELHI: The massive cost escalation in the CWG projects has drawn the attention of the parliamentary estimates committee which is learnt to have asked the central government to explain the reasons for the cost overruns . At a meeting, sources said. the parliamentary committee grilled the Union sports ministry on the expenditure incurred on stadia and infrastructure projects for CWG and how the spending had overshot initial estimates by huge sums. Sources said...

NEW DELHI: Taking note of the long delay and cost escalation in the Kashmir rail link project, one of the key works taken up by railways since Independence, government auditor CAG has blamed "poor planning and due diligence before its execution for it. The 29-km long Udhampur-Srinagar-Baramulla railway line project's originally estimated cost of Rs 3,077 crore in 1999-2000, has escalated to Rs 19,565 crore and the project is still not complete....

NEW DELHI: This could be an example of poor execution of infrastructure projects making a hole in tax payers' pockets. The delay in executing about 160 projects has resulted in a cost overrun of over Rs 31,500 crore. The problem has also become a national phenomenon with almost all the states reporting cost overruns on account of reasons varying from delay in tying up funds or acquiring land to unacceptable ones like the slow pace of work. According to an official...

HYDERABAD: The governments of Andhra Pradesh and Telangana may disagree on several issues but displaying a rare harmony , both have decided to clear decks for reviving stalled irrigation projects worth over Rs 70,000 crore, helping recovery of dozens of infrastructure firms. While the Andhra Prdesh government has decided on approving the cost-overruns claimed by the firms executing engineering, procurement and construction (EPC) contracts, the Telangana government has...

NEW DELHI: The price of indigenous aircraft carrier has shot up a whopping six times and will now cost Rs 19,341 crore, a parliamentary panel has said, criticising the "regular delays" and cost overruns in almost all acquisition activities of the navy. The Standing Committee on Defence also said it is "high time" that adequate budgetary provisions are made to the force so that deficiencies are mitigated and the country is capable of...

NEW DELHI: The government today said except for a Rs 1,965 crore cost overrun in the capacity expansion of SAIL's Burnpur plant, there has been no cost escalation in the state-run firm's entire Rs 72,000 crore ongoing exercise. "There has been no cost overrun except in ISP expansion where the cost estimate has been revised to Rs 16,408 crore against the earlier cost of Rs 14,443 crore..," Minister of State for Steel and Mines Vishnu Deo Sai said in a...

NEW DELHI: Fund constraints, delay in land acquisition and absence of timely clearances hit roll-out of key manufacturing projects with cost overrun estimated at a whopping Rs 4.5 lakh crore as of FY 2013-14, says an Assocham study. Of the total live investments worth over Rs 30 lakh crore attracted by the manufacturing sector across India as of financial year 2013-14, about 44.5 per cent investment projects worth over Rs 13 lakh crore have...

MUMBAI: Larsen & Toubro more than doubled its net profit for the quarter ended June on a consolidated basis, though the engineering major's standalone performance was moderate, reflecting the sluggish pace of growth in the infrastructure sector. L&T's consolidated profit after tax in the first quarter soared 111% to Rs 967 crore, driven primarily by gains made on sale of Dhamra Port and stake sale in L&T Finance to bring the parents holding to the mandatory 75%....

MUMBAI: The proposed Navi Mumbai International Airport, touted to be one of the world's largest greenfield, state-of-the-art international airport, may turn into a white elephant, as passengers will bear the brunt of the cost overruns incurring a likely charge of Rs 4,000 per ticket as user development fee, or UDF, two persons associated with the project said. The proposed second airport for Mumbai metropolitan region is to be developed as an alternate airport to the...

MUMBAI: Rising input costs are squeezing margins of companies involved in projects related to construction engineering and real estate. E Sudhir Reddy, managing director, IVRCL Infrastructure and Projects, said: "Currently, the construction industry is insisting on some kind of cost escalation clause in the contract, so it would save around 85% of the price increase during the construction. However, BOOT projects, those...